The Executive Director of the Consumer Protection Agency(CPA), Mr. Kofi Kapito says consumers will be unable to pay the full cost of petroleum products if government totally scraps the subsidies on them.
According to Mr. Kapito, Ghanaians cannot bear the full cost of petroleum products since most of them are low income earners.
Government spent GH¢1.5 billion on petroleum subsidy alone from 2009 to 2012.
Consumers currently pay about 72 percent subsidies for kerosene and 88 percent for the premix fuel used in the fishing industry respectively.
Ghana is currently experiencing fuel shortage due to government’s inability to pay about 1.5 billion cedis owed the Bulk Oil Distributors Company and other Oil Marketing Companies.
The shortage has generated public debate as to whether government should continue subsidizing petroleum products or allow consumers to bear the full cost.
Speaking at Citi FMs Roundtable discussion on Fuel Subsidies, Mr. Kapito noted that “consumers will also have to pay more for public transportation if subsidies on petroleum products are scrapped off.”
“My only question from the consumer side is that how am i going to afford to pay for these services that I am being asked to pay.It is going to be a chicken and egg situation,”Mr. Kapito said.
According to him, “it will be difficult if government does not provide other means of transportation when the full recovery policy is implemented.”
He noted that the “challenge of Ghanaians is their inability to enjoy social interventions in terms of petroleum products.”
By: Marian Efe Ansah/citifmonline.com/Ghana